Safaricom goes toe-to-toe with banks

Safaricom spars
with banks

Telco launches savings
plan in Kenya.

Wednesday, Dec 11th

Zimbabwe's Econet terminates post-paid platform

Zimbabwe's Econet terminates post-paid platform

Zimbabwe's highly inflationary economic environment has forced the country's biggest telco, Econet Wireless, to scrap contract line arrangements, prompting post-paid subscribers to pay in advance for talk time and roaming.

Local companies are bulking under the pressure of frequent price increases to contain the effects of inflation, in addition to almost daily power cuts and challenges with foreign currency.

Now Econet Wireless has halted contract line arrangements for its subscribers and placed them on a pre-paid platform.

"(We) require that you pay for your usage in advance. You are therefore, required to make a payment in advance towards your usage for the upcoming month," stated Kezito Makuni, acting chief operations officer for Econet Wireless in correspondence to contract subscribers dated 26 November 2019.

Makuni added that "the amount paid will be credited to your account and will ensure that you have uninterrupted service" during the upcoming month of use.

"Roaming services will continue to be available on request but will require an upfront payment which approximates the amount you would expect to use for the duration."

The company had initially put a date for commencement of the migration from post-paid to pre-paid for 1 December 2019, but has now rescheduled this for 1 February 2020 to enable subscribers to 'plan and structure' the 'advance' payments.

Earlier this month Econet explained that it was terminating the post-paid packages "until the operating environment changes".

Other telecom executives say current voice tariffs are sub-optimal as they are lagging the steep inflationary surge in Zimbabwe. The telecommunications regulator requires that any voice tariff increases be approved by the government.

"It's a reasonable move which is aptly in response to the economic conditions and inflationary pressures. The billing cycle for contract lines doesn't make sense because by the time you bill and collect the revenue, the amount would have been eroded by inflation," said one telecom industry executive on Monday, on condition of anonymity.

ALSO ON ITWEB AFRICA

Zimbabwe's Econet terminates post-paid platform Published on 04 December 2019

Hyper-inflation forces telco to scrap contract line arrangements.

Migrating ERP to the cloud Published on 10 December 2019

This provides the business with an ideal opportunity to simplify IT in the organisation by rationalising applications says Dave Ives, Digital Advisory Executive at Altron Karabina.

Cloud still too pricey in SA Published on 11 December 2019

In Africa, cloud spending has also seen a marked increase, according to the Cloud Africa 2018 report, a research project conducted by World Wide Worx for F5 Networks.

South Africa: rain, Huawei launch 5G transport network Published on 29 November 2019

Deployment in Phase 1 will cover the major regions of Johannesburg and Pretoria.